Forming good financial habits in children

A California woman devised a commitment strategy (or maybe just a bribe) with her kids to keep them debt-free and teach them finance lessons for life. (From New York Times letters section.)

I made a deal with my kids when they went to college. I would pay all their expenses, but they could not have credit cards until they had full-time jobs after graduation. The criticism from friends was that my children would suffer for lack of a credit history. But debt history can be a lifelong problem. The best credit history one can have is a sizable savings account balance.

One Response to “Forming good financial habits in children”

Interesting approach. Meanwhile, my parents taught me how to be responsible by getting me my own checking account, checks, and credit card at age 15 (before debit cards were widely available). The money from my part-time jobs was mine, though some had to be put away for college, and they taught me how to balance a check book, budget, use a credit card responsibly. They were co-signers on the account, should anything go awry and could check my balances if they chose to (I don’t think they ever did). I learned to manage my money from the moment I had my first job, and I have *never* had any credit card debt, meanwhile some college friends are still paying off their credit card sins of 15 years ago. Thanks, Mom & Dad.